Industry solutions

AML Compliance for Precious Metals Dealers

From 1 July 2026, dealers in precious metals and stones above certain thresholds will be subject to AML/CTF obligations. Precious metals have historically been used for value transfer and money laundering.

AML Shield provides practical compliance solutions for the precious metals industry, helping you meet regulatory requirements while maintaining smooth business operations.

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Key Obligations

Develop an AML/CTF program
Verify customer identity for transactions above thresholds
Understand source of funds
Monitor for suspicious patterns
Report suspicious matters and threshold transactions
Maintain transaction records for 7 years

Red Flags to Watch

Large cash transactions
Structured transactions to avoid thresholds
Purchases significantly above market value
Reluctance to provide identification
Unusual buying or selling patterns
Immediate resale of purchased items

Frequently asked questions

AML/CTF FAQ

Do precious metals dealers need AML software in Australia?

Precious metals, stones, and products dealers may need AML software when they buy or sell regulated items in a single or linked physical-currency or virtual-asset transaction valued at $10,000 or more. Card-only or bank-transfer-only payments are not the designated service described in AUSTRAC guidance for this sector. AML Shield helps dealers structure CDD, transaction evidence, risk review, training, and record keeping in one workflow.

Which transactions create higher money-laundering risk for precious metals dealers?

Higher-risk precious metals transactions include large cash purchases, structured transactions designed to avoid thresholds, unusual resale patterns, third-party payments, customers reluctant to provide identification, and transactions that do not fit the customer profile. Staff should be trained to identify and escalate these red flags; see AML Shield training.

What customer due diligence does a precious metals dealer need?

A precious metals dealer should complete initial CDD before providing a designated service, verify customer identity, understand the nature and purpose of the transaction, consider source-of-funds indicators, identify beneficial owners for entity customers where relevant, and apply enhanced checks when risk is higher. For general program setup, see how to set up an AML/CTF program before July 2026.

What records should precious metals dealers keep?

Precious metals dealers should keep records of identity checks, regulated transaction details, risk assessments, escalation decisions, suspicious matter and threshold-transaction handling where required, staff training, and AML/CTF program updates for the required retention period. AML Shield plan options are available on pricing.

How does AML Shield help precious metals dealers implement proportionate AML processes?

AML Shield helps precious metals dealers implement proportionate AML processes by guiding risk-based CDD, linked-transaction detection, threshold and red-flag workflows, staff training records, and audit trails. The AUSTRAC jeweller starter kit is designed for small jewellery businesses that meet its suitability criteria, so bullion, lending, virtual-asset, entity-customer, or higher-risk models need extra mapping. Contact AML Shield to discuss your dealer workflow.

Ready to prepare your precious metals business?

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